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2016 S&V Newsletter No 06, February 15

S&V Footwear and Leather Goods / S&V African Leather

Smiley’s, BVLK to continue

Durban (SA) – Accounts manager Pamela Pillay has confirmed that Smiley’s Footwear and BVLK Apparel & Accessories are to continue trading under Loshni Rishidaw, widow of former MD Vishal Rishidaw, who died on February 8, from injuries sustained in a motor accident several weeks previously.
Loshni had been financial director.
The news will settle some nerves in the industry.
Smiley’s is a significant supplier to some chains, and Vishal was described by component suppliers as “a good operator, who kept his cards close to his chest”.

Spectrum: Back, and planning to kick butt

Spectrum’s management team: Ismaeel, Shuaib, AK and Ahmed Shaikh.

Durban (SA) – Spectrum Footwear has been re-launched, with an infusion of younger management, 2 new brands, and a revised strategy.
This follows a 2-year period when the factory “was ticking over”, member AK Shaikh said. But his earlier plan, to sell the factory, has been abandoned in favour of an aggressive return to the market.
New to the business are his nephew, Ahmed Shaikh, and his ‘grand nephew’, Shuaib Shaikh, both formerly with Hopewell Footwear. Ahmed heads up marketing and sales, Shuaib product development and production.
AK’s son, Ismaeel, has moved from production to head up admin and accounts.
The current premises, in Inanda Road, Springfield Park, are “too large”, and are being auctioned off at the end of February. Spectrum is currently looking at a number of alternatives of around 1 200-1 500 m².
There Spectrum will grow production to:
700 pairs/day of men’s leather formal and casual footwear;
2 000 pairs/day of leather and synthetic school shoes;
2 000 pairs/day of synthetic pumps;
700-1 000 pairs/day of men’s and women’s sandals, in leather and synthetics, in summer only.
Ahmed says chains will make up only 30%-40% of sales.
Independents will take most of the rest, but he intends to build export sales, to other parts of Africa, to 15% of the total within a year.
AK’s intention is to cover overheads with the men’s ranges, allowing Spectrum to be competitive with school shoes and pumps without downgrading the products.
Men’s footwear will remain the flagship. Ahmed said he didn’t want to interfere with the handwriting of Spectrum’s Fargo brand, which has been running for 25 years. Instead, he is launching Territory, intended as street footwear with an outdoor feel, and Emilio Vecchi, a formal range. Both will be “more flamboyant” than Fargo, and both will be launched in March. – [+27 (0)31 577 5828, ct.calzature@gmail.com, www.fargofootwear.co.za]

Nasron: Chain business now, brand building is long-term goal

Nasron Footwear is a family business: From left, brothers Lee, Kevin and Rodney Naidoo with their mother.

Durban (SA) – Rodney Naidoo’s vision for Nasron Footwear is that “at the end of my time, I don’t want to say ‘I made 5 million pairs’. I want to be able to say ‘I created a brand, I’ve left a legacy’.”
For now, however, he has concentrated on growing chain business. His view is that business principles trump size and history, and his claim is that Nasron is now recognised by its customers as “a source of competitively-priced product that’s on trend, of impeccable quality, and on time”.
He says Nasron has also worked at creating a good relationship with suppliers, because “a clean name in business is worth a hell of a lot”.
Nasron was founded in 1995 by his father, Steven Naidoo, previously a designer with Hopewell Footwear and Spectrum Footwear.
Nasron started off making CMT uppers, then graduated to making leather men’s and women’s sandals for hawker wholesalers and some independents. As the business grew, first his wife, then his 2 older sons, Kevin and Lee, joined – she to handle admin, them to assist with production.
In 2001, Rodney, his youngest son, joined after qualifying with a BTech in computer science. His skills were in marketing and sales, and when his father died, in March 2004, he became head of the company, although “it remains a family business – decisions are taken jointly”.
“I’m not the shoemaker of the family,” he said, “but I’ve been able to fill this factory, and I have a vision of where we should be.”
Nasron still has an independent customer base, but it now mostly supplies mini-chains and chains.
It now makes leather men’s high shine leather moccasins, synthetic or leather boat shoes, leather sandals, and veldskoens. Its capacity is 600-800 pairs/day, in 700 m² premises, with around 20 permanent staff, which can be expanded through outsourced closing and piece work.
In 2014 it bought a 2-station BGM moulding machine to make moulded EVA half socks for its boat shoes and sells surplus production to other boat shoe manufacturers.
“We’re selling premium product at a price,” he said. “Now we want to create a recognised brand.”
Nasron currently has 2 that it wants to develop – Bayside for its high shine mocs and boat shoes, aZZa for its sandals. – [+27 (0)31 403 4817, anand4nasron@yahoo.com]

Cape Town (SA) – If you haven’t yet registered to attend the India Leather & Footwear Trade Expo which will take place on March 8 and 9 at the CTICC in Cape Town, you can do so online at http://urexpo.com.Entrance is free but pre-registration is necessary.
The Council for Leather Exports (CLE), functioning under the aegis of Government of India, Ministry of Commerce & Industry and the Consulate General of India, invites retailers of non-leather and leather footwear, garments, and leather goods, as well as finished leather buyers, to view an exclusive range of products from India.
Exhibitors include Aadil International, Alsten Enterprises, Aztec Shoes, D'Lords Footwear & Fashions, Fashion Shoes, Fibretech Leathers, IA Overseas, Indian Leather Company, Jama Corporation, Kapoor Industries, Kavis Fashions, Kiwi International, Leder Pointe, Liberty Shoes, Mani International, Mastan Leather, Naaz Exports, Nadeem Impex, Pragati International, Premier Exports, Purti International, Siddharth Exports, Sierra Exports, and Silver Line Fashion.
The India Leather & Footwear Trade Expo is a great platform to see what’s available from India. For further information, contact the organiser, Leaders in Trade Exhibitions (LTE). – [+27 (0)21 790 5849, deidreh@worldonline.co.za]

ABSA Agri Trends 05/02: Hides & skins prices

The average hide price traded slightly higher over the past week at R14.18/kg green. Hide prices are determined by the average of RMAA and independent companies.
The average price for Dorper skins traded lower at R79.00/skin and Merino traded higher at R85.37/skin.

Hide & skin price progression

Date

Hides/Kg

Dorper/Skin

Merino Skin

27/11

13.11

78.75

71.11

15/01

13.45

83.13

84.89

22/01

13.79

82.50

79.79

29/01

13.93

84.44

79.17

They Said It

"The long view? The long view is to stay alive." - SCOT marketing director Frik Kriek on business strategies.

"Oops. When I saw your name pop up, I was reminded of your invoices – I have now sent through for processing. Allow 200 days…
…
…
Only kidding." - Equator Accessories MD Leon Buhr

"I’m never coming back in January again. You spend the first month fighting for money, and it’s soul destroying." - Apeco MD Mark Gibbings (He was NOT referring to Equator).

Classified Adverts

Leather Care Agents wanted

Component Wholesalers, suppliers of the Advanced Shoe and Leather Care Range of products, is looking for a shoe sales agent (or agents) to sell the range in the Western Cape, Gauteng Limpopo, North West Province and Mpumalanga.